Inflation is already hurting everyday Americans at the gas pump, but another development on the global landscape could drive those prices even higher.
According to longtime oil and energy markets strategist Dan Dicker, the mounting Ukraine crisis, paired with Biden’s anti-domestic fossil fuels agenda, could cause prices to soar up to $7 a gallon. The cost of crude oil is continuing to rise with a lack of global investment in new sources and ratcheting geopolitical tensions.
Speaking to Yahoo Finance Live, Dicker warned that Americans might “see $5 gas at any triple-digit [oil price], as soon as you get to $100. You might get to $6.50 or $7 at $120 or $130 [per barrel]… forget about $150 [per barrel], I don’t know where we’ll be then.”
Dicker, the founder of The Energy Word, says that it’s difficult to predict expected timelines for such costs, but that the price per barrel of crude oil has already outpaced most experts’ expectations, including his own.
He attributed the rising costs to “fundamental growth in the oil market” and said that the trajectory was difficult to reign in now that it’s set on a rising path.
The national average per gallon on regular gasoline hit $3.52 last Thursday according to AAA, a full 16.5 cent increase from the previous month and 97.2 cents greater than the same time last year.
Additionally, the price of WTI crude oil opened at an eye-popping $90.90 on Thursday, a full 58% increase over its price of $57.25 the year prior.
Russian President Putin’s saber rattling in Eastern Europe is predicted by many to make things worse, with an anticipated invasion of Ukraine by Russia, experts everywhere are sounding the alarm bell that the coming geopolitical conflict would result in ripple effects on the global energy market, further constraining supply from Russia’s massive oil production and sending prices even higher.
Russia currently stands as the world’s third-largest petroleum producer, pumping out 10.5 million barrels of crude oil each day.
Dicker said that the Ukraine v. Russia “dust-up” isn’t the only reason for rapidly increasing gas prices. He argues that the main culprit is a lack of investment in new drilling. Thanks to radical Green policies pushed by leaders like Biden, Dicker says “we’re not sure if anybody can supply any fresh supply into this market, no matter where prices go.”
Author: Jim Collins